Arkansas Exempt Employees laws & compensation compliance analysis

Arkansas Exempt Employees: What you need to know

Under Arkansas's overtime law, an employer must pay each employee overtime in the amount of 11/2 times the employee's regular pay rate for hours worked in excess of 40 hours a week (AR Stat. Sec. 11-4-211). The Arkansas overtime provision does not apply to employers with fewer than four employees or employers covered by the federal Fair Labor Standards Act (FLSA). Arkansas does not require overtime pay for hours worked in excess of 8 per day or on weekends or holidays. Because this rate is the same as that prescribed by the federal FLSA, the net effect of the state law is to extend overtime protections to workers not covered by the federal standard.
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Arkansas law provides an overtime exemption for executive, administrative, professional, and outside sales employees (AR Admin. Code Sec. 010.10.001 (4.1-4.5)). When choosing whether to apply state or federal law, an employer must apply the law that is most beneficial to the employee.
An individual employed in a bona fide executive capacity means any employee:
• Whose primary duty consists of the management of the enterprise in which he or she is employed or of a customarily recognized department or subdivision thereof;
• Who customarily and regularly directs the work of two or more other employees;
• Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring or firing and as to the advancement and promotion or any other change of status of other employees will be given particular weight;
• Who customarily and regularly exercises discretionary powers;
• Who devotes less than 20 percent of his or her workweek to nonexempt work (less than 40 percent if employed by a retail or ...

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Arkansas Exempt Employees Resources

Type Title
Checklists Trainees Checklist
Forms Nonexempt to Exempt Letter
Policies Employee Workweek
White Papers Use Caution When Reclassifying Employees
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